9911796707
TMI Blog2004 (11) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... anthi Trust the assessee is entitled to exemption under section 11 - Finding, therefore, no substantial question of law for our consideration, these revenue’s appeals are dismissed - - - - - Dated:- 9-11-2004 - Judge(s) : P. D. DINAKARAN., T. V. MASILAMANI. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran.- These appeals are directed against the orders dated April 23, 2004 and June 14, 2001, of the Income-tax Appellate Tribunal, Madras "A" Bench, made in I.T.A. Nos. 1972/Mds/1997 and 316/ Mds/1997, respectively, with reference to the assessment years 1994-95 and 1993-94. The brief facts, relevant for the disposal of these appeals are as under: The assessee/trust claimed exemption under section 11 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of the business carried on by National Paper Caps, and rental income, under section 11 of the Act? (ii) Whether, on the facts and circumstances of the case, the income received by the assessee charitable trust is hit by the provision of section 11 (4A) of the Act? (iii) Whether the ratio of the Supreme Court's judgment in the case of Asst. CIT v. Thanthi Trust [2001] 247 ITR 785 is not squarely applicable to the facts and circumstances of the case?" As per section 11(4A) of the Act, unless the business is incidental to the attainment of the objectives of the trust, viz., for charitable and religious purposes, the exemption granted under sections 11(1), 11(2), 11(3) and 11(3A) shall not be applied in relation to any income of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objectives of the trust or institution." The apex court in the said decision, viz., Asst. CIT v. Thanthi Trust [2001] 247 ITR 785, also held that in the case of ambiguity in the language employed the provision must be construed in a manner that benefits the assessee. On the facts, the Tribunal found that the income of the assessee had been employed to achieve its charitable objects and, therefore, even in the light of section 11(4A) of the Act and applying the decision in Asst. CIT v. Thanthi Trust [2001] 247 ITR 785 (SC) the assessee is entitled to exemption under section 11 of the Act. Finding, therefore, no substantial question of law for our consideration, these appeals are dismissed. No costs. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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